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Georgia House approves plan to tax hospital revenue

Bill could save $450 million in federal Medicaid funding

ATLANTA | The Georgia House of Representatives has passed a proposal that would allow the state to avoid losing more than $450 million in federal money for Medicaid has cleared another legislative hurdle.

The chamber voted 147 to 18 for Gov. Nathan Deal’s plan that would allow an appointed state board to impose a tax on Georgia hospitals’ net patient revenue. The assessment would replace an existing tax that expires June 30. The money is used as state match money to secure additional federal financing for the Medicaid insurance program.

Senate Bill 24 now goes back to the Senate for final consideration of the House changes.

Deal pitched the measure as a way for lawmakers to avoid an explicit vote on extending a tax, while still avoiding steep health care cuts.